MBS International: Federal bill failure not terminal for new terminal

Published 3:00 am, Saturday, July 30, 2011

Construction crews continue work on the new MBS International Airport terminal on Tuesday. The new terminal, which is set to open next year, will replace the current one that was built in 1965.

Construction crews continue work on the new MBS International Airport terminal on Tuesday. The new terminal, which is set to open next year, will replace the current one that was built in 1965.

Photo: NEIL BLAKE | Nblake@mdn.net

MBS International: Federal bill failure not terminal for new terminal

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News that the federal government has shut down airport modernization projects, including ones in Flint and Traverse City, is not affecting construction at MBS International Airport in Freeland. Officials there say work is continuing on the construction of a new $48.3-million terminal that is expected to be open for air travelers in 2013.

MBS officials say construction on their new terminal will be unaffected by the legislative stalemate.

"We have the monies available to continue construction and be unaffected by this failure to pass the law," said Ryan Riesinger, MBS assistant manager.

"It's going very well," Nagel said of a project that will see a modern, more energy efficient facility replace the aging current terminal that was built in 1965 and has infrastructure issues.

"We've had to phase the project a little more than we'd like because of FAA funding... there's an excitement about it in the community. People like their MBS experience."

Spence Bros. of Saginaw, the general contractor for the project, is currently installing building systems (HVAC, electrical & plumbing) and interior walls as the building begins to take shape. That work will keep crews busy until December. Two additional construction phases centering on the aircraft parking ramp and building finishes/carport construction have just been put out for bids, Nagel said.

"Following these two phases, the big work to be done is the parking lot and installation of the building security system," he said.

While designers say the new terminal building will be a much more inviting and efficient facility, officials note that the number of flights and air fares will not be dramatically affected.

"The purpose is to meet our needs for the next 30 to 40 years," Nagel said. "Air service is independent of the terminal project. It doesn't mean, however, that we're not trying to improve air service."

Nagel notes that the airport commission does not set air fares. They are set by the airlines, but Nagel said he and other MBS officials closely monitor ticket prices and are able to communicate any concerns about air fares to the airlines.

Delta and United Express are the two carriers flying out of MBS, a local resource that Nagel says provides travelers a gateway to the world.

"With our two carriers you can connect with one of their hubs and fly to hundreds of worldwide destinations," he said. "If a family of four wants to travel to Orlando or a businessman needs to get to Shanghai, we can get them there."

A flowing roof and open design, key elements of the new terminal, capture the spirit of innovation that has been instrumental to past and present success of the region, officials say. The architecture also allows for an abundance of natural light to flow into the terminal, creating a bright and uplifting design that is symbolic of the bright future of the area, officials said.

"What we are certain of is that when the new terminal is complete, it will be an efficient, sustainable facility that truly captures the spirit of the region," said a statement posted on MBS's website from Martin Wander of Reynolds, Smith & Hills, Inc., the Jacksonville-based aviation design & architectural design firm that designed the new terminal.

Practically speaking, the new terminal, with all its modern improvements, will retain one of MBS' longstanding hallmarks: convenience.

Nagel points to a canopy at the entrance of the new building that will protect customers from the elements as a key customer service feature.

"You can go from the curb, to ticketing and through security out to the gate on one floor with no stairs or escalators," he said. "It's extremely convenient."

Two studies, one in 2005 and another assessment in 2006, both arrived at the same conclusion: a major renovation of the existing terminal or construction of a new terminal would be necessary to bring MBS up to speed with current and future aviation requirements. Nagel said deciding to build a new terminal is a more cost-effective, long-term option, and unlike a renovation project, does not disrupt passenger service. It's move that has been met with widespread support among community leaders.

"It's very encouraging that the project is supported by the Great Lakes Bay Regional Alliance, our chambers of commerce and economic development agencies," Nagel said. "Strong business leaders know the importance of the airport to the community."

In 2005, an economic impact study found that MBS showed a $100-million impact, directly and indirectly, to the region's economy on an annual basis. In 2010 over 261,000 people flew out of MBS, a figure that the airport is on pace to surpass this year.

"We're running about 8 percent higher than last year," Nagel said. "It's important to remind people that a lot of factors affect air travel."

These include the national economy, local economy, air fares, fuel costs and security issues. In an effort to attract more customers and keep its name out there, MBS has stepped up marketing efforts that emphasize what it views as the airport's advantages over competitors. Nagel said travelers, like MBS ad campaign messages stress, should consider more than just air fares when considering airports to fly out of.

"What is the true cost? Your time and gas are factors. Convenience is a huge consideration. I think people lose sight of the true costs involved."

The new terminal construction is primarily funded (about 70 percent) through grants administered by the FAA's Airport Improvement Program. These federal funds are generated from aviation and passenger user fees. A state match pays for about 2.5 percent of the project cost and approximately $10-million in existing MBS funds is covering the balance, officials said.

No property tax dollars are being used to construct the new terminal, Nagel added.

FAA funding, officials say, also was used by MBS to acquire land for the new terminal, utilities and relocate some critical navigation equipment.

Assistant airport manager Ryan Riesinger said the MBS International Airport Commission has not decided what to do with the current terminal once the new one opens.